EU fails to reach deal on financial supervision

Efforts to clinch a deal on the way banks, insurers and markets in the European Union are supervised failed on Wednesday and talks will resume in late August or early September, EU sources said.

Talks have not led to an agreement this morning. Negotiations have now been postponed until the end of August, early September, a European Parliament source said.

The agreement on creating pan-European authorities that would aim to prevent any repetition of the financial crisis are deadlocked because of differences between governments and the parliament over how much power the new supervisors will have.